Note 4 - Net Income Per Common Share

9 Months Ended

Sep. 30, 2016

4.	Net Income per Common Share

Basic net income per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per common share reflects the potential dilution that would occur should all of the shares of Class A common stock underlying restricted stock units (“RSUs”), as well as all of the shares of Class A common stock, for which the Company has accrued an expense, that may be delivered pursuant to the purchase agreement relating to the assets of Reliable Networks of Maine, LLC (“Reliable Networks”), be issued.

A reconciliation of the common shares for purposes of the calculation of the Company’s basic and diluted net income per common share is as follows (weighted average number of common shares outstanding in whole numbers and net income in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015

Weighted average number of common shares outstanding - basic		3,283,177		3,239,306		3,283,177		3,239,306

Effect of dilutive securities		101,131		50,373		97,001		46,196

Weighted average number of common shares and potential common shares - diluted		3,384,308		3,289,679		3,380,178		3,285,502

Net income	$	1,125	$	1,850	$	4,199	$	5,640

Net income per common share - basic	$	0.34	$	0.57	$	1.28	$	1.74

Net income per common share - diluted	$	0.33	$	0.56	$	1.24	$	1.72